The Government will invest money into a scheme that will see 2,000 high quality homes erected in the Build to Rent sector.
Is the Government Finally Coming Round to the Idea of Build to Rent?
For some time, it’s seemed like the Government is almost out to get the private rented sector in the UK.
From the introduction of its additional 3% levy on Stamp Duty for rental market investors, to its refusal to later allow exemption from this rule for the Build to Rent sector, the Government appears to have very rarely had the best interests of the sector at heart.
However, it may now finally be seeing the value that the Build to Rent sector has for the British property market, both in terms of building new homes and providing accommodation that meets the needs of those who are looking to rent first and foremost, after it was revealed that the Government will be investing in a new Build to Rent project.
Delivering more than 2,000 homes nationwide, the plan is designed to bring into play the Government’s Autumn Statement policy of targeting housebuilding in areas where there is most demand for new homes.
This will mean the homes being constructed across Manchester, Leeds and Birmingham, all of which are key cities for business growth, and, as such, have higher demand from tenants.
In total, there will be as much as £400m spent on the huge Build to Rent project, and some £45m of this is going to be coming from the newly announced Home Building Fund from the Government, which Philip Hammond, Chancellor, unveiled last week.
Housing Minister Gavin Barwell said of the project: “Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone.”
“This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester, it will create jobs and opportunities for many hundreds of people,” he added.
The Government has announced some support for the Build to Rent market through increased investment.
This article has been provided by Experience Invest.